|Things to be Aware of as You Approach Payroll End of Year.
The Superannuation Guarantee Charge will increase again next financial year to 9.5% on the 1st July 2014; this rate will freeze until June 2018. The rate is proposed to gradually increase over the next years to 12%, subject to legislative process. At this stage it is scheduled to reach 12% in July 2022.
The proposed schedule:
The new 9.5% rate is applied to Ordinary Times Earnings amounts paid after 30 June 2014, irrespective of when those amounts accrued.
The 9% rate applies to OTE/salary paid up to 30 June 2013.The 9.25% rate applies to OTE/salary paid up to 30 June 2014.The new 9.5% rate will apply to OTE/salary amounts paid from 1 July 2014 onwards (2014-15 year).
Answer: On 2 July 2014 the wages are paid to an employee for June 2014. The SG contribution is to be calculated at the 9.5% rate.
If the WAGE was PAID in June and then on 2 July 2014 the SG contributions are paid to the superannuation fund, the SG contribution is to be calculated at the rate when wages were paid, being the 9.25% rate.
Answer:On 2 July OTE is paid to an employee that relates partly to unpaid wages accrued up to 30 June and partly to work performed after 30 June. The SG contribution is to be calculated at the new rate of 9.5% on the full amount of OTE which is paid on 2 July.
For details, checklists and guides on everything Superannuation Guarantee click here –www.icb.org.au/Resources/Payroll/Superannuation-Guarantee
Source: ICB May 2014 Newsletter